Only Subsidised Car Loans can Reduce the Warehouse Inventory of Russian Cars

01.04.2009 — News

THE SVERDLOVSK OBLAST.

The people of the Sverdlovsk Oblast show interest in subsidized car loans to buy Russian-made cars. The RF Government's decree concerning these loans came into force on 24 March 2009. A lot of people interested in subsidized car loans come to the dealership, said Andrey Karpov, the Deputy Director of OAO Ekaterinburg Lada, to RusBusinessNews.

Lending requirements are rather tough: borrower's income should be at least 35 thousand roubles a month, term of the loan - 2.5-3 years; moreover a 30% downpayment is required.

In recent months Sverdlovsk Oblast car dealerships saw a 60-70% decrease in sales and Ekaterinburg-Lada - a 40% decrease. The AvtoVAZ dealership chain has a month and a half sales' worth of cars accumulated currently.